Skip to content
AnalystLens

PROCTER & GAMBLE Co 8-K Report (Mar 27, 2003)

Reports
Other Events
Filing Date
Filed March 27, 2003
Period End
March 27, 2003
Security
PG
In the record · 2016–202610-K1210-Q328-K226

PG filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 226 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Aug ’19Aug ’19
  2. Leadership change8-K · Jan ’22Jan ’22
  3. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed March 27, 2003. Cited figures are marked; the original filing is the authoritative source.

On March 27, 2003, Procter & Gamble filed a Form 8-K under Regulation FD to recast its internal and external reporting segments.

The change reflects two portfolio and management moves: the May 31, 2002 spin-off of the Jif and Crisco brands, and the July 1, 2002 transfer of feminine care from Baby, Feminine & Family Care into Beauty Care. The former Food & Beverage segment becomes Snacks & Beverages, and the divested or spun-off food businesses (Jif, Crisco, commercial shortening and oils) move into Corporate. The filing states the realignment affects only segment presentation, not consolidated results, so headline fiscal 2002 net sales of $40.2 billiona and net earnings of $4.35 billion are unchanged.

The recast materially changes how the segments look. Under the new structure, Baby & Family Care reports fiscal 2002 net sales of $9.23 billionb and net earnings of $738 million, versus $11.88 billion of sales under the old Baby, Feminine & Family Care segment. Beauty Care rises to $10.72 billion in sales and $1.61 billion in net earnings, up from $8.08 billion and $1.18 billion previously, driven by the Clairol acquisition and the addition of feminine care.

Snacks & Beverages shrinks to $3.25 billionc in sales and $303 million in earnings, compared with $3.80 billion and $384 million under the former Food & Beverage segment. Corporate absorbs the divested food assets, showing fiscal 2002 net earnings of ($651) million on the new basis. For investors, the practical takeaway is that prior segment comparisons are not like-for-like and should be rebased before drawing conclusions about growth or margins.

Beauty Care now carries the company's strongest growth and profitability story, with 13%d unit volume growth in fiscal 2002 largely from Clairol, while Baby & Family Care shows strong earnings growth (12%) on cost reductions despite roughly flat sales. The Snacks & Beverages segment posted a 6% sales decline but a 25% earnings increase on cost cuts. The filing is a presentation update rather than a financial event, but it gives analysts a cleaner view of the core business going forward.

02—Key points

Key Highlights

  1. Segments realigned effective Q1 fiscal 2003 (July-September 2002): feminine care moved into Beauty Care, Baby, Feminine & Family Care renamed Baby & Family Care, and Food & Beverage renamed Snacks & Beverages.
  2. Consolidated fiscal 2002 results are unchanged at $40.24 billion in net sales and $4.35 billion in net earnings; only segment presentation changed.
  3. Beauty Care is now the largest segment by net earnings in fiscal 2002 at $1.61 billion (up 18%), with net sales of $10.72 billion, up 7%, boosted by the Clairol acquisition.
  4. Baby & Family Care fiscal 2002 net sales were essentially flat at $9.23 billion, but net earnings rose 12% to $738 million on cost reductions and 5% unit volume growth.
  5. Snacks & Beverages fiscal 2002 net sales fell 6% to $3.25 billion, yet net earnings grew 25% to $303 million from broad-based cost reductions.
  6. Jif and Crisco (spun off May 31, 2002) and commercial shortening and oils are now reported within Corporate, which posted a fiscal 2002 net loss of $651 million on the new basis.
  7. The change follows FASB Statement No. 131 and comparative fiscal 2000-2002 segment data has been recast, so historical comparisons are now on a consistent basis.

03—Questions

Frequently Asked Questions

  1. Does this 8-K change Procter & Gamble's reported consolidated financial results?

    No. The filing states the realignment affects only the presentation of segment results and does not change consolidated results. Fiscal 2002 net sales remain $40.24 billion and net earnings remain $4.35 billion.

  2. Why did P&G reorganize its segments?

    The reorganization reflects two changes: the May 31, 2002 spin-off of the Jif and Crisco brands, and the July 1, 2002 move of feminine care from Baby, Feminine & Family Care into Beauty Care. The segments were realigned to match the current management structure and to comply with FASB Statement No. 131.

  3. How should investors compare segment performance after this change?

    Investors should use the recast figures rather than the previously reported segment data. For example, Baby & Family Care fiscal 2002 sales are $9.23 billion on the new basis versus $11.88 billion under the old Baby, Feminine & Family Care segment, so the two are not directly comparable.

  4. Which segment drove the most growth in fiscal 2002?

    Beauty Care led growth, with net sales up 7% to $10.72 billion and net earnings up 18% to $1.61 billion. Unit volume rose 13%, primarily due to the Clairol acquisition, and excluding Clairol, volume grew 2%.

  5. Where are the divested food businesses reported now?

    Jif, Crisco, and the commercial shortening and oils business are reported within Corporate. The filing notes that prior-period results for these businesses have been moved there, which is why Corporate shows a fiscal 2002 net loss of $651 million on the new basis.

04—Continue

← View all 8-K filings